Tesla CEO Elon Musk sent out a memo to employees saying the company is preparing for its next phase of growth, citing costs, and reductions in increasing productivity as driving factors.
In that memo, Musk also said, "there’s nothing more I hate, but it must be done.” As he communicated to a massive 15,000-employee Tesla job cuts, he said "it is very difficult to say goodbye."
If you remember Tesla car sales were down 9% in the 1st quarter of this year compared to last year as there is more EV competition on the market competing with Tesla. And some of these other EV producers are just as good as Teslas, and some are even better.
Tesla Employees Thought They Were Being Transferred, not knowing they would be losing their jobs and never returning. One of the employees anonymously spoke to KCENNews saying he just bought a car, he has bills, he has life, and he doesn't know what he is going to do. I mean companies require people to give them at least a two-week notice. Wouldn't it be right if Tesla perhaps did the same?
You know, people are finally realizing what major companies care about.
Tesla cars aren't that expensive compared to other new cars in the market, but still, Tesla sells expensive cars in an absolutely abysmal economy. What did you think would happen?
Also, to be fair to Tesla, I see car sales are slowing. The companies must adjust. How could it be otherwise for Tesla? How? At least give people some notice. But I don't know what Tesla may have done. I report this news based on what KCENNews reported.
Now, if car sales are slowing down, should we expect major plant closures for the big three automakers since they can’t lay off union workers according to their contracts?
Do you remember that in one of my recent articles, I wrote that Tesla's price cuts are strategic and Tesla is moving into a competitive situation? Here we go layoffs to keep the company competitive. But look for my tomorrow's article, arguing for the opposite.
Armen Hareyan is the founder and the Editor in Chief of Torque News. He founded TorqueNews.com in 2010, which since then has been publishing expert news and analysis about the automotive industry. He can be reached at Torque News Twitter, Facebook, Linkedin, and Youtube. He has more than a decade of expertise in the automotive industry with a special interest in Tesla and electric vehicles.